This week, the financial world is focused on a highly anticipated event—the Jackson Hole Annual Meeting. As an important gathering of Central Bank governors worldwide, the spotlight of this meeting undoubtedly falls on Federal Reserve Chairman Powell. He will deliver a speech on Friday, which is likely to be his last major impactful public address during his tenure.

Currently, the financial markets are engaged in a fierce battle around a central question: Will the Federal Reserve significantly cut interest rates in September? This gamble has driven Wall Street into a frenzy. Traders have spent $10 million on options contracts, betting on a 50 basis point rate cut in September. If the bet pays off, the return could reach $100 million, far exceeding the returns from traditional investment channels.

Despite the latest PPI data showing that inflation still has some resilience, the market's speculative enthusiasm does not seem to have diminished. The current market generally expects an 80% probability of a 25 basis point rate cut in September, while some risk-takers are even betting on a significant cut of 50 basis points.

Powell's speech will have a profound impact on global markets. If he emits "dovish" signals, suggesting faster and larger rate cuts, it may stimulate global liquidity, driving funds towards high-risk assets, benefiting the stock and cryptocurrency markets. Conversely, if he maintains a "hawkish" stance, emphasizing the need to continue fighting inflation and a cautious approach to rate cuts, it may lead to sharp fluctuations in the bond and stock markets in the short term, putting pressure on risk assets.

A survey by JPMorgan shows that many investors have shifted from a "bullish" to a "neutral" stance, indicating that some funds are taking a defensive posture amid concerns that Powell may make more "hawkish" remarks.

For the cryptocurrency market, if the Federal Reserve lowers interest rates, it may bring more liquidity, driving a short-term rise in mainstream cryptocurrencies like Bitcoin and Ethereum. However, if Powell's stance is "hawkish", overall risk assets may correct, and volatility in the cryptocurrency market may intensify. Nevertheless, investors also need to be wary of the market behavior of "buying the expectation, selling the fact", as a real rate cut may actually lead to a correction.

For ordinary investors, the key is to control their positions well and not blindly follow the risky bets of Wall Street. They should use idle funds cautiously to participate in investments, as protecting the principal is essential to ensure future investment opportunities. Whether in the stock market or the cryptocurrency field, investors should be well-prepared for risk prevention.

Friday's speech will undoubtedly become a barometer for global financial markets, inevitably causing significant fluctuations in the short term. The market will witness whether aggressive bettors will become overnight millionaires or if prudent investors will laugh last. Regardless of the outcome, this financial game will have far-reaching effects on global markets.